Employee vs. Shareholder Rights Related to Termination

Employee vs. Shareholder Rights Related to Termination

Nov 02, 2023
By admin

When it comes to private businesses, also known as closely held businesses, it's common for roles to intermix, with many employees also being shareholders. A distinguishing factor of closely held businesses is that their shares aren't publicly traded. For executive employees who double as shareholders in these businesses, understanding your rights in both capacities, especially concerning termination, can be complex. Generally, the employee-employer relationship is "at-will," meaning either side can legally end the relationship for any legitimate reason. However, executive...

If I Resign as Director Of Company, Will I Lose my Shares or Equity?

Dec 19, 2022
By Peter Friedmann

You may have been instrumental in creating a company, which resulted in you receiving shares or equity in that company. As organizations grow, they experience changes that may encourage the original creators to decide to move on to different ventures. For any number of reasons, a director of a company may choose to resign from his or her position. And while being a director does not necessarily make one a shareholder in a company, for those directors that do hold...

What Are the Rights of a Minority Shareholder in a Company?

Nov 08, 2022
By Peter Friedmann

As an employee, you may find yourself being offered the opportunity to hold or purchase shares within the company that you work for. In some cases, you may be considered a minority shareholder – meaning that you will be part of a group of shareholders who typically hold less than 51% of any given company. The potential to become a minority shareholder may leave you wondering about the rights of minority shareholders in private companies. This is especially an area...